Can You Invest in Trader Joe’s Stock?

If you're a fan of Trader Joe's, you may be wondering if you can invest in Trader Joe's stock. Unfortunately, Trader Joe's is not publicly traded, so there is no way to buy shares directly from the company. 

However, there are a few ways that you can invest in Trader Joe's without buying stock directly from the company.

We will explore some of those options and answer some common questions about investing in Trader Joe's stock. 

Can you invest in Trader Joe's stock?

No, you can't invest in Trader Joe's stock. However, there are some things to take note of if you are still insistent on owning equity in this popular store. 

Who owns Trader Joe's stock? 

The majority of Trader Joe's is owned by a German company called Aldi Nord. In fact, Aldi Nord owns the entire Aldi chain, which includes both Aldi Nord and Aldi Süd. 

This company had revenues of 106.3 billion USD (2019). Aldi Nord is owned by the two founders (Karl Albrecht & Theo Albrecht). You cannot invest in this company or their parent company ALDI Einkauf GmbH & Co. oHG either as they are also not publicly traded. 

Did Aldi buy Trader Joe's?

Aldi Nord owns the Trader Joe's chain, but they did not buy it. In 1979, Aldi Nord and Aldi Süd split into two separate companies. At this time, each company owned its own respective share of the Trader Joe's stores. 

How much is a share of Trader Joe's?

Since you cannot buy shares directly from Trader Joe's, there is no set price for a share of Trader Joe's. As mentioned before, Trader Joe's is not publicly traded so it is difficult to find information about what the company is even worth. 

Why isn't Trader Joe's publicly traded? 

There are a few reasons why Trader Joe's may not be publicly traded. For one, the company may not want to deal with the extra regulation that comes with being a publicly-traded company. 

For example, they would have to disclose their financial information to the public, which could give their competitors an advantage. 

Additionally, being privately owned gives the company more control over its direction and growth. This is because the company does not have to answer to shareholders and can make decisions that they think are in the best interest of the company, without worrying about pleasing investors.

It's also worth noting that Aldi Nord, the majority owner of Trader Joe's, is a private company. This means that there is no easy way for investors to buy shares in Aldi Nord either. 

That being said, there are a few ways that you can invest in Trader Joe's stock without buying stock directly from the company. 

How to invest in Trader Joe's 

To invest in Trader Joe's you'd have to buy equity directly from the company, which as we mentioned before, is not possible since Trader Joe's is not publicly traded. Even if you go to their parent company and offer an excessive amount of money, they may not want to sell since Aldi Nord is a private company. 

You might be thinking that you can buy the rights of the name brand and open your own "Trader Joe's", but this is not possible. The company has strict policies about who can use the name and how it can be used. They are not a franchisor and do not allow other businesses to use their name or logo. 

The only way to indirectly invest in Trader Joe's is to buy stock in a company that does business with Trader Joe's. For example, you could buy stock in a food supplier that sells to Trader Joe's or in a company that owns the shopping center where your local Trader Joe's is located. 

While these may not be the most ideal options, it is the only way to invest in Trader Joe's stock without buying equity directly from the company. 

Trader Joe's market share 

Trader Joe's has 10.5% of the entire US population as customers, according to Packaged Facts, whereas Whole Foods captures 6.3 percent. Using this data, we assume that Trader Joe's has a dominant market share in the grocery space. Furthermore, the firm's sales are expected to be around $13.7 billion each year. 

Their main customer base is people that earn over $80,000 per year. On average they are also married, live in urban areas, and are millennials. Trader Joe's appeals to this demographic because they offer unique items that can't be found at other grocery stores. Overall, Trader Joe's has a very loyal customer base and continues to grow each year. 

Trader Joe's IPO 

Trader Joe's will most likely never have an initial public offering (IPO). As we mentioned before, the company is privately owned by Aldi Nord. This means that the only way to invest in Trader Joe's is to buy equity directly from the company, which is not possible since Trader Joe's is not publicly traded. 

If they were to go public, it would be easy to imagine that TJ's stock would do quite well. The company is profitable, has a strong brand, and enjoys a cult-like following among its customers. However, it is important to remember that this is all speculation. 

Trader Joe's is a privately owned company and there is no indication that it will ever go public. 

Trader Joe's Valuation 

Even if Aldi Nord wanted to do an IPO for Trader Joe's, it would be difficult to value the company since it is not publicly traded. This is because there is no way to compare it to other companies in the same industry. 

If Trader Joe's were to go public, it would be valued at around $22 billion. This is based on the fact that Whole Foods was valued at $13.71 billion when they were sold to Amazon. The reason for this estimate is that Trader Joe's has a larger market share than Whole Foods. Investors may decide to buy a hypothetical IPO if they think that the company will continue to grow at its current rate. 

Trader Joe's also has more than 500 stores nationwide and there's no sign of slowing down. This means that there is a lot of potential for growth in the future. When factoring in the growth potential, Trader Joe's could be valued at even more than $22 billion. They are also a grocery business. 

This type of business is always going to be in demand as humans need to eat. They may not be a glamourous tech stock, but their business model supports a need that we all share. That is a value that can often be overlooked by investors. Another way to see if a company has value is if they have a competitive advantage. 

What is Trader Joe's competitive advantage?

When it comes to Trader Joe's, its competitive advantage is its low prices. They are able to offer lower prices than other grocery stores because they don't have the same overhead costs. 

Having a strong footprint in urban areas is also a benefit. This is because urban areas have a higher concentration of people. This means that there are more potential customers in these areas. 

Trader Joe's also has a very efficient distribution system. This is because they own their own warehouses and trucks. This allows them to have more control over their inventory and keep costs low. All of these factors contribute to the value of Trader Joe's.

If the company were to go public, it would most likely be valued at over $22 billion. However, as we've mentioned before, this is all speculation since Trader Joe's is a privately owned company. 

Can you buy a Trader Joe's franchise? 

No, unfortunately, Trader Joe's is not a franchisor. The company is a privately-owned grocery store. However, if they were a franchise, it would likely cost more than the average grocery brand name. 

This is because the company has high brand recognition and is a well-established business. They also have a very supportive customer base. 

Conclusion

The bottom line is that if you're interested in investing in Trader Joe's, the only way to do so is to buy equity directly from the company. However, this is not possible since Trader Joe's is not publicly traded. While there is no way to invest in Trader Joe's directly, there are indirect ways to do so. 

If you are still interested in investing in the grocery business, there are other options available. By investing in other companies like Amazon or Walmart, you can invest in the industry and still profit from the growth of the grocery business. 

However, if you're looking to invest in a company like Trader Joe's specifically, you'll have to wait for an IPO. Although, that may never happen.